SEC Releases Staff Report on Transactions in Municipal Securities

FOR IMMEDIATE RELEASE2004-91

Washington, D.C., July 1, 2004 -- The Securities and Exchange Commission today released a joint report by the Office of Economic Analysis and the Office of Municipal Securities on their examination of two data sources provided to the SEC by the Municipal Securities Rulemaking Board. The Report on Transactions in Municipal Securitieshttp://www.sec.gov/news/studies/munireport2004.pdf examines various characteristics of the more than 7 million transactions in municipal securities, aggregating $2.6 trillion, that took place between November 1, 1999 and October 31, 2000 and of the $2 trillion of municipal securities that were outstanding during that period.

The report provides summary information on spreads, trading volume and turnover, and the variation in prices received (or paid) by customers purchasing the same municipal security on the same day. The reports also examines transaction activity classified by various characteristics of the bond, including interest rate type (fixed, variable or zero), issuance amount, insured status, rating, and maturity and includes information on other topics that may be of use in analyzing and understanding municipal securities markets.

For example, the report estimates the size of the spreads paid by customers on fixed coupon bonds — that is, the difference between the average price that customers paid for a municipal security and the average price that they received when selling it — for various trade sizes and across securities with different characteristics. Spreads typically were smaller for larger transactions, for transactions in highly rated securities, and for transactions in securities with short remaining maturities.

To obtain a printed version of the Report, call (202) 942-4040 or write to Publications and Printing, U.S. Securities and Exchange Commission, 450 5th Street, Washington, D.C. 20549-0012.